What Finreg Has in Store for Q1 2019

What Finreg Has in Store for Q1 2019

We highlight what to expect this quarter and recap Q4 2018’s key regulatory developments.

FinReg’s Q1 Game Changers:

There will be no turn of the year respite from Brexit. Prime Minster Theresa May set a provisional date of January 14 for the previously postponed “meaningful vote.” This is just one week in advance of the January 21 deadline, which in the absence of an agreement, would leave us with a no deal Brexit.

On March 1, the transition period ends for the New York State Department of Financial Services cyber security regulation, heralding in a higher standard that will likely influence future Federal US regulation. The SEC also named cyber security as a high priority for early 2019.

Key Developments from Q4:

The Brexit process saw another delay in December. Given the deal was likely to be rejected by the House of Commons, Prime Minister Theresa May postponed the scheduled U.K. Parliamentary vote on her proposed Brexit deal with the E.U. The vote is now set for January 14. More delays only increase the likelihood of a no-deal Brexit.

In November, U.S. voters put Democrats in charge of the House, creating a divided government with the Republican-led Senate and President Trump. Despite political divisions, the SEC’s regulatory agenda will move along in 2019 with rules for liquidity, cyber security, ETFs, and digital assets.